MADER GROUP LIMITED (MAD)
Share Price Analysis and Chart

14/11/2024

3

Downgrade to Hold from Buy

$7.20

29.50%

Following a review of cyclical drivers for Mader Group and after recent share price strength, Bell Potter raises its target to $7.20 from $6.80 and downgrades to Hold from Buy.

The broker’s assumed weighted average cost of capital (WACC) was also lowered to 10% from 10.5%.

The analysts see limited upside risk to FY25 guidance in the current environment as North American mining activity remains challenged.

FORECAST
Bell Potter forecasts a full year FY25 dividend of 8.60 cents and EPS of 28.90 cents.
Bell Potter forecasts a full year FY26 dividend of 10.40 cents and EPS of 34.70 cents.

22/08/2024

1

Buy

$6.52

17.27%

Mader Group achieved guidance in its FY24 results with Moelis observing the Australian segment grew strongly and North America, while still growing, moderated.

Net profit of $50.4m was broadly in line with expectations. The broker updates estimates to imply 16% compound growth in EPS for FY24-26.

Catalysts should come from continued expansion in North America and an increased contribution from ancillary services. Buy rating maintained. Target is reduced to $6.52 from $7.41.

FORECAST
Moelis forecasts a full year FY25 dividend of 7.80 cents and EPS of 27.10 cents.
Moelis forecasts a full year FY26 dividend of 7.80 cents and EPS of 31.50 cents.